Teucrium Investment Advisors made a significant entry into the market with its 2x Long Daily XRP exchange-traded fund (XXRP), marking the first leveraged XRP product available in the United States. The ETF debuted to strong performance, achieving a trading volume of $5 million on its first day, which was celebrated as one of the company’s “most successful” launches and positioned it in the top 5% of newly launched ETFs.
This ETF aims to provide investors with double the daily returns of XRP through swap agreements. Given the absence of appropriate spot XRP ETFs listed in the U.S., the reference rates for these swaps draw upon various European exchange-traded products.
The product’s introduction was facilitated by a shift in the U.S. government’s approach, leaning towards a more favorable stance on cryptocurrencies. Following the exit of the previous Securities and Exchange Commission (SEC) administration, the firm promptly filed for the ETF and capitalized on the initial launch window once the typical 75-day review period concluded.
“Our filing came right after the previous SEC administration left, and we launched today,” stated CEO Sal Gilbertie. “I think we’re nearly at a couple hundred thousand shares.”
In terms of market activity, the ETF outpaced Volatility Shares’ 2x Solana ETF (SOLT) by approximately four times, classifying it within the top 5%, according to ETF analyst Eric Balchunas from Bloomberg.
“It’s been an excellent launch — by far our best launch day for any fund we’ve ever created,” said Gilbertie. “There was an immense amount of excitement… I believe this is largely due to us being previously overlooked.”
Investors gain exposure to XRP through swaps linked to European XRP ETPs, and the fund may also utilize other XRP-related derivatives, such as futures, to optimize efficiency and reduce costs. Gilbertie, however, emphasized that this product caters to short-term trading rather than long-term investment.
“This is unquestionably a tool for short-term trading — ideally for just one day,” he noted. “Due to the reset mechanism and the mathematical factors involved, if the asset moves either very slowly, sideways, or declines, you will incur losses.”
Teucrium, managing approximately $320 million across 12 ETFs, is already preparing to launch an inverse XRP ETF titled the Teucrium 2x Short Daily XRP ETF. This would provide investors with opportunities to benefit from falling XRP prices, although Gilbertie mentioned that the firm would gauge demand before proceeding further.